Upload
muthu-pandian
View
180
Download
8
Tags:
Embed Size (px)
DESCRIPTION
40 year journey
Citation preview
1 9 6 7 2 0 0 7
T
H
E
C
A
P
G
E
M
I
N
I
S
A
G
A
T H E C A P G E M I N I S A G A
1 9 6 7 2 0 0 7
T H E C A P G E M I N I S A G A
Tristan Gaston-BretonCorporate Historian
5Preface page 6
I. 1967-1975. The story of a corporate project: from Sogeti to Cap Gemini Sogeti page 10
Timeline page 12
First steps in an entrepeneurial venture page 16
Sogetis new ambitions page 30
The great leap forward page 40
II. 1976-1989. Time for expansion: a brain power multinational page 46
Timeline page 48
A new dynamic page 52
Growth and audacity page 66
III.1990-1997. Crisis and transformation: a conquest for leadership page 80
Timeline page 82
A new deal page 84
Crisis and renaissance page 96
IV. 1998-2007. Global ambitions: a Group with no limits page 112
Timeline page 114
The good years page 116
Stormy weather for the Group page 126
Renewed confidence page 142
Appendix: a few milestones page 152
Key figures page 154
40 acquisitions in 40 years page 156
The Group and its eminent shareholders page 157
Some Group history-makers page 158
Contents
Telling this story, our story, is also a way of letting others get to know us better: first and foremost,
our customers who have the absolute right to know who they are dealing with and where the Group
to which they entrust their business comes from and is going to; secondly, our partners, allies, advisers,
critiques and other relations; and thirdly, our shareholders - though they often know us best of all.
But perhaps above all, it provides an introduction for all the men and women who have joined
the Group in recent years (the others were able to read the story of the first 30 years in a book published
in October 1997) and not so long ago knew almost nothing about us, just as we knew nothing
about them. This book tells them what unites us and makes us members of the same indivisible
community. Trust is rooted in shared history; it demonstrates that we share not just a corporate
culture but a soul.
Naive and Huron-like I may be (though Ive been around quite a bit too), I always felt that Capgemini
is quite unlike any other company. It started out differently and has constantly cultivated this
distinction. In a world of short-termism where share prices have become the sole measure of
performance and worth, the Groups history has followed a common thread which connects the past
to the present, Grenoble to Mumbai, the founder and his PA (the only survivors of that original
October 1967 team) to the 80,000 employees assembled under its banner today. This story highlights:
the primordial role that people play in the Group. In an era of globalization, the fighting, pioneering
and even somewhat rebellious spirit inherited from the past still prevails;
the spirit of conquest, embodied in the acquisition of several dozen firms (some bigger than
itself at the time) but driven by total respect for the culture and personality of the people who
were brought in;
the predilection for freedom and independence, which meant that anyone who tried to enslave
the Group was driven out;
Youre on! Such was my reply to Serge Kampf when he asked me to write the preface to the history
of the Group he founded forty years ago. Still, as a newcomer to the management team, I was not
in the best position to speak with authority about a saga so closely tied to the personality and destiny
of the man who began it all. Indeed, Serge Kampf never ceases to amaze me - although he had the
natural legitimacy and historical perspective to write this preface, he finally persuaded me that
the viewpoint of a freshman such as myself would be more interesting to readers today than
that of an old boy. I would have talked about the past, whereas you will talk about the future.
And so I find myself in the strange situation of the Huron in Voltaires LIngnu: asked, through eyes
which have seen something of the world but which have not yet become misted over by time, to
contemplate the history of a company created in a small apartment in Grenoble in October 1967
and which has since become a worldwide company.
But what is the point of such a history? Some historians will say that it prevents us from being
condemned to repeat it. However, reading these pages, I have the feeling that the Group has constantly
repeated its history, sometimes even with a certain amount of amnesia. Indeed, it seems to follow
an unchanging pattern of conquest, crisis and transformation. Each time, Capgemini has emerged
from this balancing act stronger and more determined than ever. So, perhaps historys first task
is to teach us not to be surprised by ourselves. But we like giving ourselves a fright, pushing ourselves
to the limit and then overcoming our own resistance. The Group has always preferred new challenges
to comfort and peace and quiet. Its entire journey has been driven by a subtle mix of daring and
reason. Daring has meant taking risks; reason has guided its thirst for new adventures. This account
reveals in detail how the company has constantly tried to scale new heights, but has never lost its
nerve or put its founding values at risk.
6 7
Prefacea company
like noother
9Today, Serge Kampf and Paul Hermelin, so different and yet so close, share the same vision of the
market, the same sense of rigor and the same concern for efficiency. It was this that convinced me
at the beginning of 2004, in the eye of the storm, to come and work with them in this deeply multi-
cultural community. In the past three years, I have experienced the ravages of the crisis, attacks
from all sides, a cohort of transformation projects, a general rallying around clear objectives shared
by all, a return to fine weather, and healthy performance once again a remarkable synopsis of
the Groups entire history. Of course, this doesnt make me a privileged observer of this adventure
but, in reading this history, the first 37 years of which I knew nothing, I have developed a deep
conviction that, to move forward while remaining faithful to itself, Capgemini must constantly
innovate, transform itself, take risks and never forget that all crises offer amazing opportunities for
bouncing back and metamorphosis to anyone who seizes them. It is as if one can never experience
great joy without first undergoing great suffering.
As a child of its century, Capgemini has already left its unique imprint and style, and this is a genuine
source of satisfaction and pride as we look back. Now its time for everyone working in this great
company and those who will join us in the future to write the next chapters of this story. We shall
continue with the same desire and determination as those who made this Group what it is today
to remain masters of our destiny.
Philippe Grangeon
Member of the Executive Committee
(*) by making judicious use of the secateurs, one of only three management tools he claims to use (the others
being the paper shredder and a coin for making difficult decisions, he says!)
8
the judicious but ever-present taste for adventure and risk, making this an epic story of colorful
characters, events large and small, and plenty of surprises;
the importance of the Groups fundamental values and its commitment both to the company
itself (e.g. budgets) and its customers and employees;
and the importance of being frank, without which there can be no real trust; speaking your
mind is truly a duty in this Group.
This history also demonstrates that there has long been a development model of which Capgemini
has been a perfect example in its sector, if not its inventor. This model is founded on controlled
decentralization and the significant empowerment of individuals who are constantly expected
to outperform themselves but also to enjoy themselves and derive personal satisfaction in the process.
It bespeaks the existence from the very earliest years of a genuine Capgemini touch, a way of
working together and mobilizing all its energies to serve our customers. Team spirit, if you will.
This history also serves to remind us that, unlike other companies, the Group has never become
involved in ventures which would have compromised its professional authenticity. Not that the
fertile imaginations of its managers didnt occasionally push the Group in that direction, but Serge
Kampf managed to keep the ship on course despite all the obstacles and never gave in to fads or
pressure (*). The fact that it has always taken plenty of time to consider things from every angle
has meant that Capgemini has always been ahead of the pack, even if people often thought it was
lagging behind. This goes all the way back to the winning pair of IT services and consulting
dreamt up in the 1970s, and encompasses outsourcing (in 1971), the Atlantic crossing, and the
more recent establishing in India. Indeed, over the years Capgemini has helped set some of the
professions standards
The storyof a
corporate1967 > 1975: From Sogeti to Cap Gemini Sogeti
In less than ten years the SOcit pour la Gestion de lEntrepriseet le Traitement de lInformation (SOGETI), founded by Serge Kampfin Grenoble on October 1, 1967, managed to make its mark as a majorplayer in its sector. This was the result of an astonishing entrepreneurialdynamism, which led the company to start diversifying its portfoliovery early on, and which culminated in the consecutive takeovers, in 1973and 1974, of two large IT services companies CAP and Gemini ComputerSystems. These two acquisitions led to the creation on January 1, 1975,of a Group with a presence across Europe, encompassing complementaryprofessions and cultures: Cap Gemini Sogeti.
project
B U S I N E S S , S O C I E T Y I T C A P G E M I N I
1967 > 1975
B U S I N E S S , S O C I E T Y I T C A P G E M I N I
IBM develops the first floppy disk.1967 October 1: in France, the second TV channel broadcastsits first programs in color.
December 3: a 55 year old South African businessman,Louis Washkansky, is the first human to have a heart transplant.It is carried out in a Cape Town hospital by Dr Christian Barnardand his team.
March: creation of the structuredprogramming language Pascal. First PC launched,the HP 9100A, called a desk calculator.
December 9: invention of the mouse, whichrevolutionized the world of IT.
1968 May 14-June 24: the social unrest of May 1968, 10 millionpeople on strike in France.
July 1: the last EC customs barriers come down to createthe European Common Market.
October 14: first live television broadcast from space fromthe Apollo 7 shuttle.
Summer: Bell Labs creates the UNIX operating system.
September 2: creation at the University of Columbia(New York State) of ARPANET generally considered to be
the forerunner to the Internet.The first data is communicatedat 50 Kb.
1969 February 9: maiden flight of the Boeing 747. A month later,Concordes maiden flight..
April 28: General de Gaulle resigns after eleven criticalyears in the history of France.
July 20: Neil Armstrong andEdwin Buzz Aldrin are the firstmen to walk on the Moon.
August 8: devaluation of theFrench Franc.
July 1: creation by Xerox of the Palo Alto Research Center(PARC) in Palo Alto.
1970 April: creation of the Creusot-Loire Group,a new French steel giant.
September 21: the American firm General Electric sellsHoneywell to Compagnie Bull which it had taken over in 1964.
October 1: creation of Sogeti in Grenoble (SOcit pourla Gestion de lEntreprise et le Traitement de lInformation).
February 12: creation of the position of Sales Directorat Sogeti for Jos Bourboulon, Serge Kampfs former bossat Bull.
September 1: creation in Geneva of the first Swiss branch,to be headed by Robert Thoral from February 17, 1969.
October 5: 1st Rencontres in Grenoble (27 participants+ spouses).
December 31: the first financial year (15 months) showsrevenue of 1.5 million Francs and net profit of 4%.
March 28-29: first real management committeeat Sogeti with six members: Serge Kampf, Jos Bourboulon,Robert Thoral, Georges Vernais, Ren Claretand Thuy NGuyen Cong.
April 26: 2nd Rencontres in Lyon (43 people + spouses).
May 1: opening of the first Paris office in 7 rue Royale,headed by Thuy NGuyen Cong.
June 24: start of research with Cofradel and Cegos-ITto create a processing firm in Lyon.
October 21: Serge Kampf sells the 20% of Sogeti-Francescapital he had bought from Gemini Computer Systems to Cofradel.
January 30-31: 3rd Rencontres in La Tour-du-Pin (France)
February 1: first issue of Atout Pique, the monthlyin-house magazine, eventually replaced at the end of 1971by Pique Pocket (publication of which ended in January 1975when the Cap Gemini Sogeti Group was created).
March 1: Daniel Setbon (chief accountant) joinsthe company.
June 18: creation of Herms-Informatique (Sogeti +Solame + Cofradel + Le Progrs + la Societ Lyonnaisede Banque) which becomes Eurinfor on January 1, 1971.This brings Sogeti into facilities management 20 years aheadof everyone else.
June 19-20: 4th Rencontres in Lyon (France).
July 1: opening of the Zurich office with Werner Zllig(ex-IBM) as director.
December 14: signing of first Sogeti-Bossard agreement.
Autumn: launch of the Bowmar 901B, the first pocketcalculator with four functions and an eight-digit red LEDscreen. It costs 240 dollars.
November 15: sales of the first microprocessor in historyby Intel. The Intel 4004 4-bit processor costs 200 dollars
and helps developmicro-computers.
January 1: official creation of Eurinfor (chaired by SergeKampf) and launch of Sogeti-Formation (chaired by ThuyNGuyen Cong); creation within Sogeti of a Product Divisionwith two specialized departments (basic software andautomation).
January 18: opening of the Sogeti branch in Marseille,directed by Herv Jahan, formerly with Bull.
March 5 and 6: 5th Rencontres in Geneva, the first to beopen to external guests (200 participants).
April 20: inauguration by the Government IT Director ofSogetis new premises in Paris in rue des Entrepreneurs(Entrepreneurs street).
May 2: Jean-Baptiste Renondin joins the firm as Directorof Eurinfor in Paris.
1971 Creation of Pechiney Ugine-Kuhlmann, a leading Frenchprivate group.
February 8: first computerized trading on NASDAQ(National Association of Securities Dealers AutomatedQuotations) which installs its first IT network betweenstockbrokers.
September 15: first Greenpeace operation: militantecologists set off from Vancouver on the Phyllis Cormackfor the U.S. nuclear tests in Alaska
The storyof acorporateproject
B U S I N E S S , S O C I E T Y I T C A P G E M I N I
1967 > 1975
B U S I N E S S , S O C I E T Y I T C A P G E M I N I
The French researcher Roland Moreno inventsthe smart card.1974 March 13: inauguration of Roissy Charles de Gaulle airportin France.
May 19: Valry Giscard dEstaing is elected President ofFrance, just ahead (with 50.8% of the vote) of the Socialistcandidate, Franois Mitterrand.
June: Citroen taken over by Peugeot a merger desiredby Michelin, Citrons major shareholder.
April 4: Microsoft is founded by William (Bill) H. Gatesand Paul Allen. The company aims to develop operatingsystems and software for computers.
December 19: IT group Honeywell-Bull takes a stakein CII (Compagnie Internationale pourlInformatique) which ironically had beencreated in 1966 to promote the FrenchIT industry.
March 4: official announcement to customersand the press of the merger of CAP (with staff numbering 780)with Sogeti (250 staff excluding Eurinfor).
May 31-June 3: 8th Rencontres in Marbella (Spain)devoted to discussing the policy and structureof the future Cap Sogeti Group.
June 5: Serge Kampf takes the risk of organizinga General Assembly for all CAP personnel in the Palaisdes Congrs in Paris and comes out the winnerof a heated debate waged alone against trade unionistsopposed to Sogetis takeover, and finally hasthe merger accepted by a large majority.
September 1: acquisition of Gemini Computer Systems(U.S.).
January 1: the Cap Gemini Sogeti Group is officially created(via the merger of CAP + Gemini Computer Systems + Sogeti).
January: the last issue of Atout Pique is replacedby a new in-house magazine: Pique Pocket.
July: first distribution of a dividend to Group shareholders(no dividend had been distributed since 1967).
July 31: on the final day of the period offered in July 1973,CISI takes over Eurinfor.
August 29: following a staff vote at the Dutch branch, CAPsplits from its former English partners and CAP Europe operationscome under Cap Gemini Sogetis control.
October 19-20: 9th Rencontres in Istanbul (270 participants)with many journalists attending and a powerful speechby Serge Kampf on the Seven capital duties of the new CapGemini Sogeti.
November 25: Serge Kampf receives from Huguesde lEstoile (Government Industry Officer) the Prestige ofFrance diploma to reward the Groups dynamism, sustainedgrowth and international scope, and the technical expertiseof its engineers.
1975 Merger of Pernod and Ricard: the new group becomesleader on the French aperitif market.
April 30-June 5: fall of Saigon, evacuation of the Americansand the end of the Vietnam War.
The Advanced Research Projects Agency (ARPA), behindArpanet in 1969, launches the Internetting project to connectseveral networks together.
1973 April 14: the Five Nations [Rugby] Championship endswith five winners. Each team had won two matches creatinga tie and the championship therefore ends with neitherwinners nor losers.
April 25: the Paris priphrique ring road is openedby Prime Minister Pierre Messmer.
October: first oil crisis. In three months, the price of a barrelof crude oil leaps from 3 to 11.65 dollars.
January 29: signing in Madrid (under the very nose of CAP)of an agreement between Sogeti and ERIA, a Spanish IT servicesstart-up.
February: acquisition of Sesi, a data input and processingcompany, and creation of Sorinfor (Eurinfor + Soref) to manageIT at the Paris Chamber of Commerce and Industry.
March: Serge Kampf personally acquires 15% of the capitalof CAP.
May 31-June 3: 7th Rencontres in Djerba (417 participants+ spouses). The main figures in the IT sector in Franceand a dozen journalists are invited.
July 5: CISI becomes a shareholder in Sogeti (34%)and Eurinfor (34%).
July 25: after purchasing Bertrand Asschers stake, Sogetiowns 48% of CAP.
September 14: inauguration in Lyon of the Eurinfor buildingby Government IT Officer Maurice Allgre, with all employeesand customers present.
Creation of SAP.
First portable electronic game from Waco (TicTacToe).
March: first electronic maildeveloped by Ray Tomlinson.Since he needed a separatorbetween the name andaddress of the receiver,he chose the @ symbolwhich was unused andpronounced at.
August 1: creation of CISI by the subsidiarizationof CEAs Calculations department.
May 11-14: 6th Rencontres in Calcatoggio (Corsica): 340participants. Pierre Audoin, the French Government IT Officer,makes a statement on the primacy of hardware that causedwaves in the IT services community and is later proven wrong
by the market.
September 4: Michel Berty(ex-Bossard) joins as Head of the SogetiServices Division; Jos Bourboulon headsup the Product Division.
The CII replaces the CEA as Sogetismajor client (20% of total revenue).
1972 June 5: the first Earth Summit opens in Stockholm(Sweden).
October 28: first flight of the Airbus A300,built in cooperation with five European nations.
The storyof acorporateproject
graduating in law and economics and spending a short time with the government-run Direction
Gnrale des Tlcommunications. He was then transferred, at his request, to Grenoble where
he was born in 1934. Serge Kampf was initially responsible for sales development in the region
and was then promoted to head of the branch in 1966. A pretty good start to a career for this
32-year-old manager, especially as the job was interesting. As well as the purely commercial
aspects (selling Bull mainframes and supercomputers to companies in the region), it involved
heading up a team of high caliber engineers whose job it was to design and install programs
on the hardware sold. But, above all, it involved day-to-day management of the Bull agency
in Grenoble, a small local firm at that time. As a manager,
Serge Kampf had his hands full persuading enterprises
to convert to information processing, still a new techno-
logy whose utility or profitability was not obvious to every-
one at the time. He also had to fight Bulls major rival IBM,
which combined a strong reputation in terms of its tech-
nology with savvy commercial skills. Instead of looking
for new markets, Serge Kampf decided to fight the local
representatives of the other computer manufacturer
head on, and so managed to attract several long-standing
IBM customers over to Bull, including the shoemaker
Charles Jourdan and, even better known at the time,
SOGREAH (Socit Grenobloise dEtudes et dApplications
On October 1, 1967, a new IT services company officially opened for business in an
inexpensive two-room apartment in the center of Grenoble (France). It was called SOcit
pour la Gestion de lEntreprise et le Traitement de lInformation (Business Management and
Information Processing), or SOGETI. Its founder was Serge Kampf, a former Bull employee who
swapped his enviable executive status for the much riskier one of entrepreneur. He decided
to make this change on impulse but circumstances played a major role.
Becoming an entrepreneur
It all began with a big spat on December 23, 1966, with Serge Kampf deciding to
resign from his job as manager of the Bull General Electric branch in the Dauphin-Savoie
region, based in Grenoble. He joined the computer manufacturer in August 1960 after
First steps inan entrepreneurial
venture1967 > 1970
December 23: Serge Kampf resigns from Bull.
1966
16 17
Serge Kampf shortly after the creation of Sogeti
a consultancy job for a bakers oven manufacturer in Valence (Pavailler, one of his former Bull
customers), he found himself philosophizing with a friend on a beach on the Adriatic coast
where he was taking a short break. There, Serge Kampf finally made the decision to become
his own boss, and for this purpose, to create an IT services company.
An original business model
Serge Kampf was certainly not the first to enter this market. In France, ten or so firms
such as SEMA, CAP and SESA were already offering IT services to large French corporations.
But it appeared that one niche area was still up for grabs: technical support, i.e. installing and
commissioning computer systems on users premises. Computer manufacturers had recently
started billing their customers for these services, whereas until then they had been included
in the price of the hardware. But since these firms focused on the manufacture and sale of
hardware, they considered this work to be marginal and didnt always make much of an effort
to meet their customers growing expectations. Among the service providers, only CAP (Centre
dAnalyse et de Programmation) showed any real interest in this business. At a time when
many companies were starting to use computing equipment, the demand for technical support
was still far from being satisfied, and therefore presented good opportunities for growth.
This is why Serge Kampf decided to go into technical support, where there was still
much work to be done. The company he founded in early October 1967 stood out in the world
500The number of American IT services companiesat the start of the 1960s
27%The share of Sogetis capitalheld by Serge Kampf at the start
1967 October 1: creation of SogetiEarly IT services companies: demand for technical assistance driven bythe spread of data processing in the business world
Hydrauliques), an engineering firm which had been
a loyal IBM client since 1945! At Bull General Electrics headquarters in Paris, they followed this
young managers professional development with great interest; he surely had a fine career
ahead of him in the company
When, at the end of 1966, Serge Kampf resigned from his job, it was not in the least
because he felt that his efforts had been insufficiently recognized or rewarded. He left the
company in protest against Bulls cavalier attitude, to put it mildly towards its customers. In
October and again in December 1966, it had decided to withdraw two series of computers
from the market: first, the GE 600 (Bull General Electrics flagship model), and then the Gamma
140 and 145 series. These two decisions made Serge Kampfs blood boil, as he now had to explain
to his customers that the computers they had ordered could not be delivered! What really
drove Serge Kampf along with Jos Bourboulon, the equally annoyed Lyon regional manager
to resign from Bull General Electric was his sense of honesty towards their customers and a feel-
ing of repulsion at his employers obvious lack of concern. When they quit, they took with them all
eighteen of Bulls other regional managers. But Serge Kampf and Jos Bourboulon were the only
ones to stick to their guns; all their colleagues were to change their minds in the following weeks.
So it was that on June 30, 1967, after changing his customers orders to the new
computers forced on them by Bulls U.S. management, Serge Kampf found himself out of a
job, with limited resources and no plans for the future. Two months later, in August, after doing
IT services:a modernprofessionWhen Serge Kampf created Sogeti, firms dedicatedto IT services had already been operating for sometime. Unsurprisingly, the sector began in the U.S.as information processing itself started to spreadthrough the corporate fabric. With such firms asComputer Sciences Corporation (CSC), ElectronicData Systems (EDS), and Computer Associates,there were almost 500 IT services providersat the beginning of the 1960s in North America.
This movement quickly spread to Europe, andespecially France which became very active in thisarea. In 1967, there were already a dozen firms,some of them quite large. The stars in the sector atthe time were Socit dEtudes de MathmatiquesAppliques (SEMA), created in 1958; CEGOS, whichstarted up in 1961; Compagnie Europenne deRecherches en Cyberntique Industrielle (CERCI),founded in the same year; Centre dAnalyse et deProgrammation (CAP) created in 1962; and SocitdEtude des Systemes dAutomation (SESA) in 1964.
Unlike their U.S. counterparts, French serviceproviders tended to focus on specific areas. SEMA,for example, specialized in operational researchand IT-supported applied economics; CAP in technicalcomputing for industrial and scientific applications;and SESA in end-to-end systems comprisinghardware and software. This approach was largelyconditioned by the state of the French market(where IT was less advanced than in the U.S.),as well as by the career profiles of the foundersof French firms, usually engineers or graduates ofthe Ecole Polytechnique, Frances top engineeringschool. Apart from CAP, very few firms in the ITsector were interested in technical support asa result an extraordinary opportunity for growthopened up for Sogeti.
18 19
First steps inan entrepreneurial
venture
Trademark registeredat the Ministry of Industry
company? Sogeti Socit pour la Gestion de lEntreprise et le Traitement de lInformation,
literally Company for Business Management and Information Processing. Its business? As its
name clearly suggested, using the vocabulary of the time, it was IT services, with a clear focus
on the corporate market. Its shareholders? They were twelve, from various backgrounds,
including former Bull employees such as Jos Bourboulon, who joined the team later as
sales manager; three analyst/programmers who provided the young company with vital
technical know-how; friends, the largest contingent, and also professional contacts such as
Michel Jalabert, the former head of Bulls Services division who was later to join the firms
management team. The capital? 100,000 French Francs at the time (equivalent to 115,000
in 2007). Serge Kampf only owned 27% of the firms capital to start with and had an option
on a further 7% which would give him a blocking minority. A matter of money the young
entrepreneur had invested all he had in his new business, and, above all, the will to build a
collective project fueled by genuine team spirit. However, the first weeks quickly undermined
this initial scheme, as four of the partners (owning a total of 47% of the equity) started
maneuvering to take control of the company and try to oust Serge Kampf. He had to fight
this unforeseen battle by getting the other shareholders to rally round and battle through
fierce negotiations with the rebels, at the end of it all owning 51% and then 84% of Sogetis
equity capital (at the price of a heavy personal debt). He had not really been looking to hold
such a large majority position in the company and it would have two key consequences for
the future. First, Serge Kampf had learnt a lesson and, from then on, would strive to protect
the independence of his company by keeping the control of 51% of the capital. Second,
The Aceof SpadesWith its strangely rounded Ace of Spades and twostrong colors (bright red and turquoise blue), Sogetisbrand new logo was a dash of originality in the ratherdull world of IT services.
It was designed by Serge Kampf himself. At first, theyoung entrepreneur paid a small advertising agencyin Grenoble 500 Francs to put forward suggestions.They came up with three ideas: a bee (symbolizingfruitful work); a toothed wheel meant to represent amagnetic tape drive; and an ace of clubs, symbolizinggood luck and happiness perfect for a start-upbusiness. However, Serge Kampf rejected these ideasand opted for another ace the ace of spades because it is the highest value card in bridge (a gamehe had played a lot as a student). But he chosea deformed ace of spades with a crushed base andtherefore original enough to be noticed especiallysince it had absolutely nothing to do with Sogetismission statement. Forty years later people still ask:why the ace of spades? And the answer is always,so youd ask why!
The choice of colors was equally unexpected. At theend of 1967, the business press was only interestedin the creation of ELF. With its new name, new identity,and new logo, the French oil giant was everywhere.As he browsed through a magazine, Serge Kampf cameacross a long article explaining the meaning of thecolors chosen by ELF for its new logo blue (stability)and red (dynamism) and revealing that ELF hadshelled out 50 million Francs at the time for its designguidelines. Without hesitation Serge Kampf choseELFs colors for Sogetis logo. At least weve saved50 million, he explained with glee to his entourage!
Turquoise and red would remain the Groups colorsuntil the merger of CAP Sogeti and Gemini ComputerSystems in 1975. For 20 years, turquoise would thenbecome the only color in the new Groups logo. InSeptember 1996, Cap Gemini gave itself a new logo withtwo shades of blue: the original turquoise symbolizinginformation technology and navy blue for managementconsulting. In April 2004, following a commitmentto no longer use the Ernst & Young name, the Groupchanged its name and graphic identity once again, butthe same two shades of blue are still found in the newCapgemini (one word) logo. The color red reappearedin 2002 when the new entity for proximity servicestook over the original name, Sogeti.
6The number of Sogeti employeeson October 1, 1967
1967 19752002
1996 20041997 2000
20 21
of IT services in a number of ways. To start with, it was a provincial rather than a Paris-based
firm. As we will see, Sogeti, by establishing its headquarters in Grenoble while almost all its
rivals were headquartered in Paris, made the most of its proximity to provincial firms, often
little known or neglected by the Paris-based service providers. Compared with its competitors,
it also put a strong emphasis on the commercial side of the business. Know-how is good, but
first you have to know how to sell what you know how to do. Know-how in itself is useless if you
sell it badly. This credo owes much to Serge Kampfs professional experience. His counterparts
among French service providers simply could not match his first-class experience in sales
gained at Bull. As a result, while his competitors often did not make much of an effort to closely
engage with their customers, Sogeti started out by using high-quality sales tools, such as standard
contracts, documentation, and sales brochures, which gave it a decisive advantage at contract
closing time. This sales intensity, together with the regional dimension, was to prove extremely
effective. On top of this came Serge Kampfs excellent knowledge of what computer users
really needed and expected. Once again, he had gained this knowledge with Bull, and it explains
why Sogeti began to diversify its business very early on. A buoyant market, a still under-
occupied niche area, excellent knowledge of his customers and a solid track record Serge
Kampf had all the trumps to make his entrepreneurial venture a success.
All he had to do now was make the project actually work. After being tempted to set
up his firm in Geneva, but giving up on the idea for patriotic reasons despite his Swiss origins,
Serge Kampf completed the official paperwork in Grenoble on October 1, 1967. The name of the
First steps inan entrepreneurial
venture
Jos Bourboulon officially joins Sogeti.
IBMs 1440 computer
the real beginning of electronic information processing. Using the Cobol language, it rapidly spread
through the world of manufacturing and services. This computer opened the age of stored
program machines, explains Michel Jalabert. You could now do real programming. As a result,
it attracted many more users and therefore applications, especially in management, accounting,
stock management, and scientific computing. This marked the beginning of the huge migration of
corporations towards information technology. As Sogeti was perfectly familiar with this computer,
both in terms of installation and maintenance, the company was able to grow very quickly during
its early years. Even before the end of its first financial year, it won a slew of significant contracts
with companies such as Evian (mineral water) which entrusted Sogeti with the development of
invoicing applications; the La Prudence bank for accounting; Aspro-Nicholas (pharmaceuticals) for
payroll; Elf-Distribution (gas stations) for managing statistical data from sales outlets; and Pechiney-
Soferec (steel) for installing and commissioningBull and IBMcomputers. InNovember 1967, Sogeti
signed a very large contract with the Commissariat lEnergie Atomique (CEA), the French atomic
energy authority, which entrusted the young company with collecting and processing all data at
the Pierrelatte enriched uranium plant, meaning no less than 3,000 measurements a second to
capture, sort, validate and then transmit in the right order to various end users! These contracts,
signed with the regions industrial heavyweights, put little Sogeti on the IT services map.
Plans were progressing in Grenoble as well. A first key stage was completed in February
1968 with the appointment of a sales executive, Jos Bourboulon, Serge Kampfs former boss
at Bull, who joined Sogeti officially as an employee after starting as a shareholder. This was
22 23
since he could now freely make use of an additional 33%, he would, through the gains result-
ing from selling and buying shares, leverage the equity as a fitting tool for expanding
the company, forgetting in the process to pay back his own debts. For the time being, Serge
Kampf spent his time completing the last formalities. On October 1, 1967, at last everything
was ready, and the Sogeti company was officially listed on the Register of Commerce and Trade.
The adventure was about to begin.
The Sogeti model: Proximity, sales efficiencyand decentralization
Sogeti started small with just six former Bull employees, including Serge Kampf, in a
two-room flat. But it had great expectations. Serge Kampf set the bar very high from the start by
plainly stating his intention to earn money from the very first year and systematically reinvest-
ing every Franc earned in useful projects. To achieve this, the company offered a broad array of
services, from diagnostics, IT consulting and auditing, to designing and rolling out IT systems,
technical support, and staff augmentation (or body-shopping). This breadth of offerings was
rare in the world of IT services at the time, but reflected the spectrum of user needs. Very early
on, it enabled the company to build up a solid portfolio of clients.
In the second half of the 1960s, more and more firms were acquiring massive amounts
of IT hard- and software. The leading computer of that period was the IBM 1401, which marked
First steps inan entrepreneurial
venture
Sogetis corporate brochure, 1969
30The maximum number of engineersat Sogeti branches
At the beginning of the 1970s, with fourteen branches in Parisand most of Frances major regional cities, where they coulddevelop very close relations with the local business community,Sogeti cut an original figure in the world of IT services.Such originality made the company more reactive than mostof its key Paris-based rivals, who preferred to send consultantsout to the customers. This also highlighted the companysprovincial profile as a player close to local companies andattentive to their specific needs.
Acting as real profit centers, the branches (known as regionaldivisions when they were covering a large territory) could havea staff of up to 20 or 30 computer specialists. But once theyreached this size and there were converging signs of strongdemand in the region, they would in turn lead to the creationof a new branch that would set up shop in the same cityor in one near by. This completely atypical process of cellulardivision was key to Sogetis anchoring in the region.
The branches were all organized on the same model. They wereled by a branch manager who enjoyed a high level of autonomy,in line with the decentralization principle. Acting like a chiefexecutive, the branch manager was responsible for salesactivities, the firms contractual commitments, executingcontracts properly, relations with customers, managing hisbranchs people and, above all, its profit and loss account.This meant that the job was highly motivating and inspiredindividual managers to push themselves especially asthe head of Sogeti introduced yet another innovation: pay forresults. This was the 60-20-20 rule, which quickly becamefamous within the company. For a theoretical remunerationof 100, 60 was fixed salary, plus two variable parts worth20 each, which could actually vary between 0 and 40. This meantthat in reality the real total compensation varied between 60and 140. The first variable was pegged to the performanceof the unit to which the manager belonged and the secondto his individual performance. Although widespread in the U.S.,this system was still exceptional in France. They knew the valueof this in Sogetis branches, since it meant that the very bestcould double or even triple their fixed salaries. And the salesstaff truly enjoyed it. It created an outstanding atmosphere,recalls Jean-Philippe Gaillard who joined the Paris branch in1974. It gave us the green light to sign almost every contract!We worked liked demons but thoroughly enjoyed ourselves.Jobs came in at such a rate that on several occasions thebranch manager asked me to advance the commissions to salesstaff myself. The accounting department couldnt keep up!
The manager of a large branch was supported by a SalesManager in charge of sales development and customer relations,and a Technical Manager, normally an engineer who helpedand advised the branchs sales people and engineers onall technical issues. In the field, each contract was furthermorehandled by a site technical manager, usually the longest-serving member of staff at the highest level, who supervisedand supported the Sogeti technicians and was responsiblefor monitoring the project in question.
The branch also acted as a tremendous spur for all Sogetiemployees to push themselves beyond their perceived limitations.Here more than anywhere else this special entrepreneurialculture the Groups hallmark could be best appreciated:sales efficiency combined with a real sense of teamwork anda high respect for human beings. The key word at Sogeti wastrust, be it in the branch manager or the technician, and be itin terms of managing the shop, gaining new markets, designinga new application, or installing a new operating system.Driving this was the desire to do better and do more, sharedby all members in the team. Provided they didnt count the hoursthey worked (it was still possible to work more to earn morein those days) and fully satisfied their customers, a Sogetiengineer, analyst or programmer had every chance of one daybeing promoted to branch manager, and a branch managerto divisional manager
The branch: Sogetis cornerstone
practically a first in the IT services arena, where most firms made do with a catch-all technical-
cum-sales department. It also marked the start of Sogetis genuine sales orientation that was to
assure so much of its success. Jos Bourboulon was successful right from the start in winning
new contracts from across the Rhne-Alpes region and very soon from France as a whole.
The downside of this amazing development was that it made life truly complicated for Sogetis
analysts and programmers, who had to regularly travel from Grenoble to every corner of
France. It also raised sensitive management problems, such as how to manage projects at an
increasing distance from Grenoble, where all the corporate resources were concentrated. Such
were the challenges that Sogeti had to address only a few months after it had started in business.
The response to these challenges would lead to the creation of the branch concept
which, together with the prime position of the sales function, really made Sogeti stand out from
its rivals. For many years, the branch approach was the cornerstone of the Groups organization.
Although widespread today, the idea of relocating to where your customers were was a radically
new idea in IT services at the time, when everyone simply managed their different projects from
their Paris headquarters. A born organizer, Serge Kampf realized that if Sogeti was to grow, it had
to get as close as possible to its customers by spreading out and penetrating the fabric of medium-
sized manufacturers, regional banks and local authorities, all potential users of IT applications.
Starting in January 1968, when it signed a contract with a major company in the Geneva
area, Sogeti decided to start up a branch in Switzerland. The project was delayed due to the
24 25
First steps inan entrepreneurial
venture
Adverts published in Le Monde in 1970(left) and Le Figaro in 1973 (right);
the headlines read Dont tortureyourself anymoretorture Sogeti,the IT services companies group,
respectively.
Job advert published inLe Monde in June 1973
events of May 1968, when the students revolt and ensuing general strike that paralyzed France
for days almost brought Sogeti down. Luckily, it survived due to the support of its first clients.
The Geneva branch finally opened on September 1,1968, under the management of Robert Thoral,
who was Serge Kampfs former training mentor at Bull, and five technical staff members. Two
years later, the Geneva branch itself expanded to become Sogeti-Suisse with branches in Basel
and then Zurich. After Switzerland, it was Frances turn, and here too the creation of new
branches was driven by the signing of new contracts lots of them! Between 1969 and 1972,
branches opened in Lyon, Marseille, Dijon, Annecy, Lille, Bordeaux, Toulouse, Rennes, Nantes
and Strasbourg. And of course Paris, a real apotheosis for the little provincial firm. In 1970, Sogeti
found premises on the top floor of a building in rue Royale, above the famous restaurant Maxims
and a stones throw from the Madeleine. In less than six months, the Paris branch managed to
sign major contracts with such prestigious customers as Dior, Renault and LOral, and began
to make a name for itself on the Paris market alongside older and better known adversaries.
By 1972, Sogeti had notched up a total of fourteen branches, eleven of them in Frances
major regions and three in Switzerland. A network of this size had a direct impact on how the
company was managed. Sogeti lost its exclusively Grenoble look and feel, and became a multi-
regional firm enjoying a fine client portfolio of large corporations and a high number of medium
and small businesses. The firms branches offered two types of service: IT services as such, that
is the total or partial design and implementation of complete systems or new individual appli-
cations; and IT organization, meaning the analysis of the problems generated by introducing
Rue Royale in Paris, 1970 14The number of Sogetibranches in 1972
26 27
First steps inan entrepreneurial
venture
A selection of administrative formsfrom the 1970s
The Groups Policies and Guidelines,published in 1989 (top); an employeehandbook, 1988 (bottom)
Decentralization yes but rules have to be respectedAs full-fledged heads of their businesses, branch managers enjoyed considerable freedom to manage as they wished,but they had to obey the rules, which were extremely strict. Serge Kampf understood that giving free rein to those on the ground a must did not mean running a Group which covered the whole of France without a few safeguards. While free to carry outtheir business as they thought fit, the branches had to apply and respect very strict accounting methods. Engineers and technicianshad to fill out an activity report each week counter-signed by the customer and listing the number of days and hours worked,the nature and purpose of the job, details of expenses, and so on. At the start of each fiscal year, each branch negotiatedits targets with its hierarchical superior in terms of revenue, operating margin, use of funds and profitability. From his officein Grenoble or when he was out on the road, Serge Kampf kept a close eye on the performance of each branch, and was preparedto tick off those who were behind on their budget and double check the expense sheets of the overly extravagant. Each quarter,branch managers would meet with him for a detailed review of their results and forecasts. Although this was often a difficultexperience for them, it enabled Serge Kampf to get a detailed grasp of the situation in each branch, refocus targets for the nextquarters and identify the best people around the table. In the branches, everyone knew that there was a firm hand on the tiller,
and on the purse strings too.
Forty years after Sogeti was founded, this discipline is still in force. It was codified in 1989 in a booklet(The Groups Policies and Guidelines) given to each staff member personally, and it still circulateswidely internally. The latest version, published in 2006, is called The Blue Book and each staffmember receives a copy. It details company basics like mission/vision, values and organization andstates that there can be no ambitious undertaking without respect for an overall plan and commonrules. It also highlights the three major imperatives which have guided Sogetis development since1967: the need for profitability (vital for survival and independence), the will to grow faster thanthe market, to remain a leader in a given sector, and the search for excellence in all respects.
IT into a company and the search for the solutions best adapted to a companys needs and
constraints. As resources were increasingly dispersed, business lines evolved, and the work-
force expanded, the organization and operating models of the firm underwent profound
changes. Serge Kampf realized that branches spread all over the country, sometimes operat-
ing hundreds of miles from head office, could not deal with a heavy set of rules. As everything
had to be decided on the spot, it was up to the local branch to be in charge of its activities.
So he decided on a policy of local autonomy and decentralization, rather than trying to control
everything from the center. A pioneering decision in France at the time, this turned branch
managers into fully-fledged chief executives. There were, nevertheless, ground rules to ensure
that the business was profitable. And branch managers and their staff were not simply left to
their own devices. Exchanges, joint seminars, and training courses were set up. In addition,
everyone in the company came together every year for an annual staff meeting; the first was
held in 1968. These Rencontres would become one of the Groups traditions.
This powerful blend of strong decentralization, an active sales policy, and client proxi-
mity, set against a background of rapid market growth, did wonders for Sogeti, as the figures show.
Between December 31, 1968, marking the end of the first fiscal year, and December 31, 1972,
revenue multiplied 26-fold and the workforce 19-fold! Only SEMA managed to equal this perfor-
mance within the same timeframe. Serge Kampf had risen to the challenge he had set himself
one day in 1967, on the shores of the Adriatic. It had taken him just four years to turn the Sogeti
start-up into an essential player in its sector. It was now time for him to turn to pastures new
1968The year of the first Rencontres
Jos Bourboulon, Robert Thoral, Serge Kampf and Jean-Baptiste Renondinat the 6th Sogeti Rencontres in Corsica (1972) Birth of an institution: the Rencontres
26The number of times revenueincreased between 1968 and 1972
How could Sogeti employees working in Lille, Rennes, Strasbourgor Marseille be made to feel more like stakeholders in a singleorganization? The Rencontres (literally meetings), one of theGroups institutions, was developed as an answer to this question,underscoring the team-spirit that Serge Kampf tried to promotein his company. The first Rencontres were held at the Alptelin Grenoble on the companys first anniversary in October 1968.Over a weekend, the companys entire workforce (27 at the time)together with their spouses, spent two days reviewing currentcontracts, results, and corporate projects. The Rencontres alsooffered an opportunity to get to know people and createpersonal contacts in a social and festive setting. They also enabledthe Group to organize high-level discussions on the future ofinformation technology. In June 1973, for example, the DjerbaRencontres (in Tunisia) invited a number of key IT players includingmanufacturers (IBM, Honeywell-Bull), rival service providers,and the senior management of the Dlgation lInformatique.
As the workforce grew, the Rencontres were eventually reservedfor managers, but were still the right place to shape, and decideon, the companys major strategic directions. The invitation ofCAP managers, just after Sogeti had taken control of this company,to the Marbella Rencontres (May 31 to June 3, 1974) was a keymoment in encouraging the two companies to get closer. The samewent for the Rencontres held in Rome in May 1988, sealingthe merger of Cap Gemini Sogeti and SESA. The Rencontresas an institution took on a particularly strategic importanceat the beginning of the 1990s, in an increasingly competitivecontext which drove the Group to constantly rethink its approach.
It was during these often heated debates that the main lines ofdevelopment that have marked Capgemini history were presented,analyzed, discussed and decided upon.
Below are some of the milestones:
The Marrakech Rencontres in June 1990, during which550 senior managers worked for three whole days to decideon the Groups global ambitions, the return to outsourcing,the creation of a consulting business (which would be GeminiConsulting), and whether to accept a new shareholder (whichwas to be Daimler-Benz). It was also at this event that SergeKampf recalled and explained the Groups seven core values:honesty, boldness, trust, freedom, team spirit, modesty and fun.
At the Prague Rencontres in June 1992 the key event was theadoption of the Groups transformation program called Genesis.
The Amsterdam Rencontres in April 1995, on how to bringthe consulting business of Gemini Consulting closerto the IT services business.
At the Berlin Rencontres in May 2000, the merger processbetween Ernst & Young Consulting and the rest of the Groupwas engineered.
And at the Montreal Rencontres in September 2006, the i3plan was launched with the aim of improving Group performancethrough Innovation, Industrialization and Intimacy with clients.
28 29
First steps inan entrepreneurial
venture
A selection of Rencontres invitations and programs:Bad Homburg (Germany, 1984), Marrakech(Morocco, 1990), Istanbul (Turkey, 1975),Calcatoggio (Corsica, 1972), Prague (Czech Republic,1992) and Djerba (Tunisia, 1973)
In November 1968, Jos Bourboulon had a long discussion in Lyon with Daniel
Angrand, the Chief Financial Officer of Socit Laitire Moderne (formerly Le Bon Lait,
The Good Milk), a major player in the dairy industry. He told me that his firm was about to
merge with the Economique dAlimentation, says Jos Bourboulon today. This was to create
a major food group called Cofradel. Industrially speaking, the merger posed no difficulties. But
at IT level, things were far more complicated. Le Bon Lait and the Economique dAlimentation
used a very diverse range of computers with Bull machines alongside IBM, Siemens, ICL,
and Honeywell hardware. Rather than suffer the pain of trying to unify the two systems,
the future executives of Cofradel decided to create an IT department and leave specialists
to manage it. Which is where Sogeti came in. As Daniel Angrand
described it to Jos Bourboulon, the project was fairly straight-
forward. It involved entrusting Cofradels entire IT organization to
a dedicated operation whose equity capital would be jointly owned
by Cofradel, Sogeti and CEGOS, a major business consulting firm
at that time. So began the facilities management venture that was
to play an essential role in the Groups history.
When he was told about the Cofradel project by Jos
Bourboulon, Serge Kampf didnt hesitate. He had in fact long been
convinced that, due to their lack of resources and competencies,
companies would sooner or later have to outsource their information
The facilities management venture
One of Serge Kampfs strengths would be to incorporate a whole range of new
businesses into Sogeti, so as to create a genuine IT services group. This was prompted by the
realization that, if Sogeti wanted to continue to make money, it had to constantly expand its
service portfolio to adapt to the constantly evolving needs of its clients, who themselves were
constantly changing. This put diversification in the driving seat at Sogeti, but more specifically
a user-centric approach to diversification grounded in a precise analysis of customer expecta-
tions. Throughout its life, the Group has refrained from diversifying for the sheer pleasure of
doing so, and thus managed to avoid losing touch with its core business. At the end of the
1960s, the diversification process began with what was then called facilities management.
275The number of Eurinfor employees in 1971
Eurinfors headquarters in Lyon (France), 1973
Inauguration of Eurinfors new headquarters, September 14, 1973
Sogetisnew
ambitions
30 31
1970 > 1973
processing to professionals. And his intuition would prove to be
correct. Although common in the U.S. and even in the U.K., there was
no facilities management at this time in France. So Cofradels propo-
sal offered a wonderful opportunity to get a foothold in a market that
Serge Kampf realized would expand very rapidly in the years ahead.
The process that was to lead to the creation of Eurinfor
began in earnest in June 1969 and lasted fifteen months in total.
It involved highly complex negotiations driven with flair by a very
determined Serge Kampf. Eurinfor was the result of combining two
service bureau firms well-entrenched in the Rhne-Alpes region (SOLAME and INFOR) and the
IT departments of several large regional firms (Dauphin Libr, Docks Lyonnais, Cofradel,
etc.). It began doing business officially on January 1, 1971, and marked a key stage in Sogetis
early development. Firstly in terms of know-how as, on top of its major business lines (diagnos-
tics, design and roll out of IT systems, and technical support), the company was now adding
a new service end-to-end responsibility for a companys IT services. Secondly, in terms of
resources, Eurinfor was based in Lyon, with 275 employees and a base of 13 latest-generation
computers, making it the ninth largest French IT services company and the leader in facilities
management. Thirdly, in terms of image, with its links to major regional firms and operating
in a cutting-edge sector which was still underdeveloped in France, Eurinfor played a key role
in boosting Sogetis reputation for technological and industrial know-how.
Serge Kampf at the inaugurationof Eurinfors headquarters in Lyon, 1973
The lengthy, complex creation of Eurinfor is in many respectsa miniature masterpiece of industrial and financial engineering.In September 1969, after negotiations lasting several months,Sogeti and Cofradel decided to create a joint facilitiesmanagement company called Herms-Informatique.But, in the ensuing months, the plan was largely transformedupon Serge Kampfs initiative.
His strategy was simple: incorporate into the initial projectseveral service bureau firms acquired to create a largefacilities management business and then open it up to newpartners and customers. As a result, in June 1970 Serge Kampfmanaged to persuade the Socit Lyonnaise de Dpts to joinSogeti and Cofradel in building Herms-Informatique.
He then convinced two large regional firms, Docks Lyonnaisand the media group Dauphin Libr, to merge their IT serviceswithin this new firm. At the same time, Sogeti took controlfirst of SOLAME (Socit Lyonnaise dApplicationsMcanographiques), a major service bureau player that haddeveloped IT application packages, and then INFOR, a dynamicyoung service bureau firm. Through this process, Serge Kampfdemonstrated astonishing financial expertise. He sold 20%of Sogetis capital to Gemini Computer Systems (which the
Group was to take control of in 1975) and then bought it backand offered it to Cofradel, generating substantial capital gainson the way.
On January 1, 1971, Infor, Solame and the IT departmentsof Cofradel, Docks Lyonnais and Dauphin Libr mergedto form a new company called Eurinfor (EuropennedInformatique), a name chosen over Herms-Informatique.A limited company with equity capital of 3.3 million Francs,the new firm was 45% owned by Sogeti, 45% by Cofradeland 10% by Socit Lyonnaise de Dpts.
As the IT specialist, Sogeti held the key positions in the firm:Serge Kampf was appointed Chairman and Chief ExecutiveOfficer of Eurinfor, and called on his old friend Daniel Setbonto take on the role of Chief Financial Officer. Setbon wasa top notch certified public accountant who had until thenbeen client manager for a Lyon accountancy firm. GeorgesVernais, another friend of Serge Kampf, was appointedas Eurinfors technical director. The position of deputy generalmanager for Eurinfor in Paris was created for Jean-BaptisteRenondin, the former marketing manager of Thomson-CSF,who was able to bring his close contacts with the Paris worldof politics and business.
One of Eurinfors computer rooms
Eurinfor:industrial vision, financial know-how
32 33
Sogetisnew
ambitions
Illustration published in the in-housemagazine Atout Pique in January 1970
Advertising poster used on all Air Inter domestic flights in 1973
Sample Eurinfor service contract (1971)
A verycommercialmindsetTogether with decentralization, the sales functionwas clearly one of Sogetis strong points. It owedmuch to Serge Kampfs own career. He started atBull in the sales department and, as the head of thecomputer manufacturers Dauphin-Savoie branch,locked horns with IBM sales people to persuadetheir customers to switch to Bull products.Compared to other longstanding French IT servicesproviders, which embodied the technical approach,Sogeti unquestionably had a far more commercialapproach to the business.
This mindset translated into rallying the wholeworkforce around the goal of gaining newcustomers and honoring commitments to existingcustomers. There used to be a popular slogan:we are all sales people. Any kind of initiativewas grist for the commercial mill provided it didnot damage the companys reputation. Sogeti wasalso an early user of advertising, which was ignoredat the time by most rivals, who found it bothunnecessary, since the market was so bullish, andunworthy of an IT services provider! Sogeti, on theother hand, was quick to post advertisementswritten by Serge Kampf himself. The first advertscleverly positioned Sogeti as helping corporationsoverwhelmed by IT and which often had neitherthe resources nor skills to manage their own ITrequirements. Dont torture yourselves any more torture Sogeti was the incisive tagline of oneof Sogetis early adverts, promising a completeassistance package to solve all your problemsconcerning the choice, introduction and useof computers. This enabled Sogeti to fine-tuneits profile as a company that was close to itscustomers and attentive to all their needs.
But Sogeti was also quite prepared to beprovocative. The next advert, once again writtenby Serge Kampf, came out in 1972. Sogeti hasgone further than the Cape of Good Hope it reads,with a clear allusion to CAP (In French Cap alsomeans Cape), the companys main rival. CAPsexecutives were furious and even went as far asreferring the matter to the courts for unfaircompetition, hiring the already highly respectedlawyer Robert Badinter to defend them. Even so,their case was dismissed.
1970The first agreement with Bossard
It was clear that facilities management met a real need as Eurinfor grew extremely
quickly and, taking a leaf out of Sogetis book, opened new offices in Paris, Lyon, Annecy,
Valence, Mcon, Grenoble and Marseille, signing new contracts with several large firms from
the Rhne-Alpes and Paris regions, and starting to develop and commercialize application
packages for payroll, accounting and invoicing. In fact, Eurinfor grew so fast that its first year
turnover of 18 million Francs far outperformed Sogetis 8 million. By entering the field of
facilities management, Serge Kampf had just won his wager on the industrialization of IT
services. By building a powerful development platform for this business, through Eurinfor,
he was twenty years ahead of his time in terms of anticipating how the sector would evolve
and foreseeing the Groups future developments in this business. We shall see later that he
eventually had to withdraw from this market, but would return in force later. The acquisition
in 1990 of Hoskyns, then Europes leader in outsourcing, and the growing importance of
this activity within the Group (20% of revenue in 2000 and nearly 40% in 2007) both stem
from the Eurinfor operation. With it, Serge Kampf was clearly looked on as a pioneer.
Towards full service
The same goal that led to the creation of Eurinfor a presence right across the IT
services market to meet the diversity of corporate needs also drove Sogeti to broaden its
business to cover all IT-related services. Its ultimate ambition was to provide IT users with
the whole package, an unrivaled proposal in a sector that favored specialization.
Business consulting was to become a new line of development for Sogeti. It all
began on December 14, 1970, with a collaboration agreement with OBM (Organisation
Bossard Michel), one of the main business consultancies in France at the time, which had
a branch in the Rhne-Alpes region, headed by Michel Berty, by chance located in the same
building in Grenoble as Sogeti! Thanks to such neighborly proximity, Serge Kampf was
able to suggest to Yves Bossard, the head of OBM, during one of his visits, that they work
closely together. For the young chief executive of Sogeti it was clear that IT services and
management consulting were complementary. He envisaged the mix as a magic triangle,
linking the client, the IT specialist and the business consultant. In many ways, Sogeti was
already active in the consulting arena, mainly through its IT organization activities which,
as we have seen, accompanied its more technical IT services. However, these services
were still essentially technical and did not go upstream since this would require a much
deeper knowledge of internal organization and processes. So Sogeti sought to fill this gap
in its capability-set, by signing a contract with OBM. Under this agreement, the two firms
would join forces on certain specific projects, which required some level of integration of
their respective competencies, especially in designing, building and marketing application
packages, and in training. As it turned out, this alliance did not lead to anything very tangible
as the IT and organization teams balked at working together on the same projects. However,
Serge Kampf retained from this period the innovative idea that the two activities of business
consulting and IT services would eventually work together in a mutually supportive manner.
This idea eventually took form twenty years later when Gemini Consulting was created in
34 35
Sogetisnew
ambitions
Sogetis corporate brochure andbusiness lines tree at the start of the 1970s
Presentation document of theagreement between Sogeti and Bossard
initiative, it led to the creation in January 1971 of a specialized division called Sogeti-
Formation, which provided corporate training courses on programming languages, analysis
methods, programming and training for managers joining or heading up IT departments.
In just five or six years, the founder had managed to build a fully-fledged Group
offering services ranging from facilities management to high-level training. This swift divers-
ification was achieved by means of a judicious blend of organic growth, acquisitions and
partnerships, with a constant focus on identifying maximum synergy between the various
businesses. This diversification illustrates the companys industrial approach Serge
Kampfs key contribution to the IT services sector but it also served to position Sogeti
strategically with respect to the major issues facing user companies. At a time when there
were relatively few professional IT specialists and many companies were finding it very
hard to acquire the right capabilities, Sogeti offered to take charge of their information
processing, end-to-end, from specifying needs to inputting and processing data. Sogeti
was the only firm in France to do this on such a scale at the time.
A key player in the world of IT
The strategys results speak for themselves. By the end of 1973, when the major
diversification drive had been completed, the Sogeti Group was worth 52 million Francs in sales
(equivalent of 40 million in 2007) and employed some 700 people, making it one of the top
million FrancsRevenue in 1973
52The fine artof hiringOften outspoken and given to deliberate provocationon occasion, Sogetis job announcements were usuallywritten by Serge Kampf. Jos Bourboulon still remembersthe phrase CEO to be replaced across the top of oneof the companys very first job ads, certainly one way ofattracting ambitious job seekers. Given the fast-growingmarket which constantly required new employees (manyof them sales people, true rainmakers), Serge Kampfwanted to attract the very best, meaning those best ableto go out of their way to land a contract. Hence the veryspecial tone of his adverts, combining virility withaggressiveness that tended to surprise and even shockpeople in the IT services community at the time.
In 1972, for example, Serge Kampf sent a job advert to thetrade press for systems analysts, which stated that Sogetihas no jobs for analysts who wear white gloves, learntprogramming via a correspondence course and aim to finishtheir day at 6.30 p.m. every day so they dont miss thechildrens programs on television! Another highly unusualannouncement is famous in the IT sector as it fueled thecharge sometimes levied against Sogeti of brutality.It was published on January 16, 1973, in the Le Mondenewspaper and advertised twenty sales positions.
1991 (the Groups management consulting arm) and when Ernst & Young Consulting
was acquired in 2000.
With facilities management and business consulting now onboard, in the
early 1970s, Sogeti was a pioneer in two activities that would drive the future develop-
ment of IT services and provide an enduring common thread to the companys
strategy. But that was not all. During the same period, Sogeti moved into two other
IT-related business lines: data input and processing, and training. Between 1970
and 1973, it acquired three data processing firms Sorgas in Grenoble, Perfo-
Service in Geneva and Sesi in Lyon. Thanks to these three firms, Sogeti created
a data input and processing hub which in 1973 accounted for fifteen processing
centers and more than three hundred data input workstations. As for the training
36 37
Sogetisnew
ambitions
Call sheetproduced by Perfo Service
Job advert published in Le Mondeon January 16, 1973
Maurice Allgre and Serge Kampf
Later in 1973, he again showed an interest in Sogetis role by putting
together an ambitious industrial set-up that combined Sogeti and the Compagnie
internationale des services informatiques (Cisi) the IT services operation of the Commissariat
lEnergie Atomique (CEA). The ultimate objective was to build a major French platform in
this sector. After persuading Serge Kampf of the value of this merger, he let him enter into
fierce negotiations which were to last all year with Andr Giraud, the head of CEA and a
future minister. The latter began by demanding that, in the long-term all Sogetis equity
should be transferred to the CEA, something which the Chairman, ever careful about both
his own and his companys independence, vigorously refused. Andr Giraud finally agreed
to rein in his ambitions. The agreement was signed on July 5, 1973, whereby 34% of Sogetis
capital and 34% of Eurinfors capital would be transferred to Cisi, which also obtained a
buying option on the remainder of Eurinfors capital until July 31, 1975. This was very hard
for Serge Kampf to swallow since he had to sacrifice his entire facilities management arm
to protect Sogeti. But every cloud has a silver lining and, by handing over part of its capital
to Cisi, Sogeti gained the financial resources it needed to carry out an operation that it was
conducting and wanted to finalize. An operation which would completely alter the IT services
landscape in France.
Custom-feed processing unit at Sorinfors headquarters in Paris (Palais des Congrs)
38 39
ten IT service providers in France. For a company created only six years earlier and a latecomer
to the market, this was an impressive performance. Not only did its rivals start to keep a close eye
on Sogeti, but so too did the French government. Maurice Allgre, who was head of the Dlgation
lInformatique (French government IT committee) set up in 1966 as part of the Plan Calcul
to promote French-style IT, enjoyed a good personal relationship with Serge Kampf and took part
in several events organized by Sogeti (the inauguration of Eurinfor and Sogeti-Paris, and the 1973
Rencontres in Djerba). Was this interest because
of the companys independence (its founder held
an 80% share of the equity capital)? Or was it the
companys sales dynamism, or its country-wide
presence, or the diversity of its business lines?
Whatever the reason,Maurice Allgrewas convinc-
ed that Sogeti would be a vital link for creating a
national IT capability. He first demonstrated this
in February 1973 when, as part of an effort to foil
a project by the Paris Chamber of Commerce and
Industry (C.C.I.P) to use U.S. information techno-
logy, he encouraged Eurinfor to create a joint
operation called Sorinfor with Soref, a Saint-Malo
IT services provider, which would be charged
with managing the C.C.I.P.s IT department.
Sogetisnew
ambitions
Sorinfors corporate brochure
The birth of a large company
The operation that changed the Groups destiny was the acquisition of CAP (Centre
dAnalyse et de Programmation), Frances leading IT services provider. It all began at the
beginning of 1973, while Serge Kampf was negotiating the conditions under which the
Companie internationale des services informatiques (Cisi) would take a stake in the capital
of Sogeti and Eurinfor. In March of that year he personally acquired 15% of CAPs capital.
Things had come together somewhat by chance during 1972, thanks to a dispute
amongst CAPs executives. This conflict led La Hnin bank, a longstanding shareholder with a
15% share, to sell off its stake. Informed of La Hnins intentions by one of his many contacts,
Jos Bourboulon noted, when he looked into the case, that CAP had forgotten to provide an
approval clause for new associates in its statutes. This astonishing oversight enabled Serge
Kampf, acting in his own name since he couldnt yet do so in Sogetis name and at the price
of a substantial loan to acquire the 15% of CAP held by La Hnin bank. There was no question
in his mind at the time of actually taking control of CAP; he simply wanted to get a foot in the
door and, if it led nowhere, at least take home some capital gains.
In Paris, at CAPs head office, they took Serge Kampfs stake in the capital very badly.
Founded in 1962 by a former organization consultant, Bertrand Asscher, and two computer
specialists, Jacques Lescault and Jean Citry, the Centre dAnalyse et de Programmation was
one of the IT services stars in France. A pioneer in custom software, the firm took off with
remarkable speed, building on the success of the IBM 1401 to dominate the market support-
ing the rollout of these computers. But CAP did not rest on its laurels and, by quickly specializ-
ing in cutting-edge activities, it became an innovator in designing and developing large
application systems and large weapons systems. Above all, CAP went international very
early, by setting up in 1966, with a British firm with exactly the same name (Cap U.K.), a joint
operation called CAP Europe. The company was led by Philippe Dreyfus, an historic figure
in information technology and also a shareholder with a 15% stake.
Since it was already an international player, operating in high value-added markets,
CAP was of the opinion that it did not have anything in common with little Sogeti and even
less with its chief executive, whose reputation as a top notch salesman did not impress thisPhilippe Dreyfus, who coined the wordinformatique (computer science)
Data processing at CAP
The greatleap
forward
40 41
1973 > 1975CAPs management team
before the Sogeti take-over
49 %The share of CAPs capital heldby Sogeti and Serge Kampf in 1973
circle of high-flying engineers. To be honest, things could have stayed where they where,
with CAP executives patiently waiting for Serge Kampf to sell his 15%. But events took a very
different turn. Rather than calming things down among the CAP executives, the withdrawal
of La Hnin only poisoned their relations. In April 1973, the atmosphere was so bad at CAP
that Bertrand Asscher decided to throw in the towel and offer Serge Kampf his 34% stake
in CAP. This operation was finalized on July 25, 1973, this time in Sogetis favor, as the
company had most conveniently just sold off part of its capital to Cisi. Thanks to perfect
timing, Sogeti was able to fund this acquisition.
By the summer of 1973 Sogeti and its chairman owned a total of 49% of CAP. After
the summer break, a private lunch with Jacques Lescault came to nothing and it took several
months for Serge Kampf to convince CAPs initially hostile managers/shareholders to sell off
their shares. Six months of unremitting and often tense negotiations ended in March 1974 with
Sogeti taking full control of CAP. During this deal, Serge Kampf also showed a remarkable
talent for persuading the CAP staff, who were fiercely opposed to coming together, of the
value of the merger when he spoke to them at their Annual General Meeting at the Palais
des Congrs in Paris. He had to personally commit not to dismiss anyone and to promise
a new staff statute combining the key benefits of the two firms. At the end of the meeting,
he had won the day. The labor policy implemented, which is still in place in the Group today,
was based on the respect for mutual commitments and involved pursuing external growth
without causing a massive brain drain, smoothly incorporating newcomers by offering, for
This is an amazing story about a Rolls Royce and a taxi plane. When it took control of CAP in June 1974, Sogeti found itself in possessionof 42.5% of the capital of CAP Europe, alongside the British firm Cap U.K. which owned the same amount. For several months, the twopartners played the game properly, until the repeated refusal of the British to associate more closely with Cap Sogeti led to conflict.The Dutch operation of CAP Europe, the largest and most profitable of the European units, decided to lance the boil as it threatened toget worse. It forced its two shareholders to give a presentation during which the two sides would each explain their European projectsand their development strategy. This was the first time in the history of capitalism that an operation had dictated its conditions to itstwo partners, but the issue was vital, since it involved deciding whether it was the French or the British who would eventually takecontrol of the European operations. The date for the examination was set for August 29, 1975.
The British were the clear favorites, since their business culture and language brought them closer to the Dutch. To make things worse,in the weeks running up to the big exam, the Dutch press (doubtless somewhat inspired by the British) raged against the French solutionas a mere stopgap affair. As for the 15% of capital owned by Philippe Dreyfus, the head of CAP Europe who had meanwhile gone overto Serge Kampf, everyone knew it would not count for much if the Dutch defected. The British then made their first mistake. On the morningof Thursday August 28, the eve of the exam, a final attempt at conciliation was organized in Luxemburg, but it failed. While the English,convinced they would win, left peacefully in their Rolls Royce to take the road to Amsterdam, Philippe Dreyfus, the chairman of CAP Europe,Jacques Lescault, the former chairman of CAP, Robert Thoral, the manager of Sogetis Geneva branch and myself, jumped in a taxi plane, havingdecided to beat the British to Amsterdam, recalls Serge Kampf today. We arrived in the afternoon and had plenty of time to have longdiscussions with the Dutch and reassure them about our intentions, adds Philippe Dreyfus. This was the first and decisive contact betweenmen who were in principle at opposite ends of the spectrum.
Act Two was played out the next morning. The French project, which assured independence of action to the European units, was presentedby Philippe Dreyfus in perfect English, and firmed up the good impression of the Dutch. The English project, on the other hand, was far morecentralized in approach and appeared somewhat arrogant. It went down badly and at the final vote the French proposal was accepted almostunanimously. Dignified in defeat, the British delegation left the premises immediately. And that is how, against all odds, Cap Sogeti wonthe day and took control of CAP Europe.1974
June 5: merger of CAP and Sogeti
300The number of Cap Sogeti employeesat the end of 1974
The incredible storyof the conquest of CAP Europe
42 43
The greatleap
forward
CAP software manual (1970 approx) Job advert from 1972 stating that Sogeti hasrounded the CAPe of Good Hope; much inkwould be spilt over the ad.
1975January 1: creation of the Cap Gemini Sogeti Group400
The number of Gemini Computer Systems employeeswho joined Cap Sogeti in September 1974
them and for their company, real development prospects, and providing them with the
assurance of becoming stakeholders in a genuinely collective project.
On June 5, 1974, CAP and Sogeti merged officially into Cap Sogeti, creating a Group
of 1,500 employees worth 160 million Francs in sales and making it the indisputable leading
IT service provider in France. It was also a Group whose business lines were entirely comple-
mentary. For Sogeti, the acquisition of CAP brought new competencies in designing and
developing large systems, which turned into a fundamental asset for the future. Although some
criticized it as an odd couple, most observers got it right and considered this merger to be
one of the most important consolidation operations the sector had seen in France especially
as it was followed in the ensuing months by two other major operations: the takeover of CAP
Europe, a separate entity in the Group under CAPs control, and of Gemini Computer Systems,
known in Europe simply as Gemini.
Gemini: the third pillar
In September 1974, barely three months after the merger of CAP and Sogeti, Serge
Kampf acquired Gemini Computer Systems, an IT services provider incorporated in the U.S.,
founded in 1968 by John Diebold and a group of American and European investors. Specializ-
ed in developing large projects for public administrations, supplying turnkey management
systems for small and mid-size companies, and marketing and maintaining application
packages, this firm generated U.S.$8 million in turnover with a workforce of close to 400. It did
not do business in the United States but was established in France, Great Britain, Germany,
Switzerland, the Netherlands and Iran. Operating in markets that complemented Sogetis,
Gemini was far from being an unknown entity. Between 1968 and 1969, it was even a fleeting
stakeholder in Sogetis equity capital. And, above all, it was headed for three years by Michel
Jalabert, a longstanding Sogeti shareholder. He informed Serge Kampf that John Diebold, who
was bogged down in insurmountable financial problems, was trying to sell. This was a godsend
for the Cap Sogeti boss, as taking over Gemini would enable him not only to expand his
Groups capabilities, but also gain real European scope scope the takeover of CAP Europe
in August 1975 would boost, just in time.
After Sogeti and CAP, Gemini formed the third pillar of the new Cap Gemini Sogeti
Group which was officially created on January 1, 1975. With a workforce of nearly 2,000
and total turnover of 180 million Francs, Cap Gemini Sogeti was not only the leading French
IT services provider but the leading European IT services Group according to its tagline.
Launched in 1967, with the fairly simple yet powerful mission of supplying technical
support to IT users, the Group had by now broadened its scope to cover the whole range
of IT-related services, putting industrialization first. This ability to constantly adapt to market
changes to meet clients needs would form the basis for large-scale expansion in the follow-
ing decade.
4544
The greatleap
forward
Marbella Rencontres in 1974, sealing the unionbetween CAP and Sogeti
Timefor
expansion1976 > 1989: A brain power multinational
From a new focus on higher value-added services and a boost for theconsulting business, to new developments in Europe and expansioninto the American market, Cap Gemini Sogeti entered a period of veryhigh growth from 1975 onwards. This growth profoundly changed itsprofile and skills, and by the 1980s, it was crowned with the acquisitionof SESA, one of its major rivals, specialized in systems integration.With this move, Cap Gemini Sogeti confirmed its place as a worldleader in IT services.
B U S I N E S S , S O C I E T Y I T C A P G E M I N IB U S I N E S S , S O C I E T Y I T C A P G E M I N I
Publication of the Nora-Minc Report on the computerizationof society.
July 1: Sony launches its walkman, a revolutionaryconcept for listening to music anywhere.
September 24-28: IT andSociety conference
organized in Parison Valry GiscarddEstaings initiative.
1979 January: Iranian revolution and second oil crisis.March 13: the European Council decides in Paris to create
a European monetary system. The new Europeancurrency is at first only an accounting unit,and is called the European Currency Unit (ECU).
May 4: Margaret Thatcher becomesthe first female Prime Minister of Great Britain(until 28 November, 1990).
December 24: the first European Arianerocket is successfully launched from the KourouSpace Center in French Guyana.
January 1: creation of Cap Gemini Spain
February 6: unconvinced by theconclusions of a report commissioned
by Serge Kampf from Jacques Sgula